OCI (456040) announced on February 9 that it returned to operating profit in the fourth quarter of last year, posting consolidated revenue of ₩467.3 billion and operating income of ₩2.8 billion—its first quarterly profit in two quarters.
However, full-year revenue came in at ₩2.0094 trillion with operating income of just ₩400 million, both declining from the previous year.
The company said in its preliminary earnings disclosure that fourth-quarter revenue declined slightly from the previous quarter due to lower carbon chemical prices amid falling oil prices. Operating income, however, surged to turn profitable as sales volumes increased across semiconductor materials, including polysilicon for semiconductors.
The Basic Chemicals division, which includes semiconductor materials, recorded revenue of ₩200.3 billion and operating income of ₩6.3 billion. Sales of semiconductor-grade polysilicon, hydrogen peroxide, and other basic materials increased, driving revenue growth and a return to profitability from the previous quarter.
OCI expects demand for key semiconductor materials, including semiconductor-grade polysilicon and high-purity phosphoric acid, to gradually expand as the industry enters a super cycle in 2026. The company plans to complete a 5,000-ton capacity expansion for high-purity phosphoric acid in the first half of this year and improve performance through higher utilization rates for hydrogen peroxide.
The Carbon Chemical division posted revenue of ₩284.1 billion and operating income of ₩1.5 billion. Both figures declined from the previous quarter due to falling product prices amid weak oil prices and scheduled maintenance across all product lines.
OCI expects a turnaround at OCI China this year as market conditions recover and Chinese joint venture OJCB, which had weighed on consolidated results, is excluded from consolidation. Profitability is expected to improve in the second half as the company expands and begins commercial production of specialty carbon black, a key material for high-voltage cables that are gaining attention due to the expansion of AI data centers.
At an earnings presentation, OCI outlined its key management priorities and shareholder return policies for this year.
Operating income declined significantly last year due to an economic slowdown and impairment losses recognized during the merger process with P&O Chemical. The company expects earnings to rebound and profitability to accelerate this year as market conditions recover and business operations normalize.
OCI plans to use this recovery phase to develop its semiconductor materials business as a future growth engine. The company aims to build a stable revenue base by strengthening cost competitiveness and expanding sales of core products such as semiconductor-grade polysilicon and hydrogen peroxide. For high-purity phosphoric acid, where OCI holds the top domestic market share, the company plans to expand its product portfolio by developing new phosphoric acid-based etchants for semiconductor etching and cleaning processes through close collaboration with customers.
To enhance shareholder value, OCI announced a shift from its previous cash dividend-focused policy to one based on total shareholder returns. The company plans to repurchase and cancel ₩10 billion worth of treasury shares based on fiscal year 2025. Over the next three years, it aims to achieve a total shareholder return ratio of at least 30% on a non-consolidated basis through a combination of cash dividends and share buybacks and cancellations.
"Despite challenging market conditions, our fourth-quarter results turned profitable, marking our full-fledged entry into an earnings turnaround phase," said OCI Vice Chairman Kim Yoo-shin. "In 2026, we will proactively respond to the mid-to-long-term growth trajectory of the semiconductor industry, continue investing in high-value-added materials to maximize profitability, and pursue active shareholder return policies to achieve sustainable corporate value growth."